Fintech lender Enova says CFPB is considering loan processing

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The seal of the Consumer Financial Protection Bureau (CFPB) can be seen at the headquarters in Washington, US REUTERS / Andrew Kelly

(Reuters) – The US Consumer Financial Protection Bureau is investigating loan processing problems at fintech lender Enova International Inc, the company said Thursday.

Enova has reported several unspecified issues itself and is cooperating with the regulator and paying back customers, the company said in a profit announcement on Thursday.

The Chicago-based financial technology company offers payday loans and other consumer and business loans. The company previously settled with the CFPB.

During a call to investors on Thursday, CEO David Fisher expressed the hope of completing the investigation quickly.

“This is a routine process at CFPB, especially in our industry, and we have been through it with them in the past,” he said.

In 2019, the company paid $ 3.2 million to settle with the CFPB after regulators found that between 2010 and 2018, Enova debited some customers’ bank accounts without their approval and failed to comply with some approved loan extensions.

Enova did not admit the allegations, saying at the time that the problems were caused by technical errors affecting less than 0.2% of payments received.

In 2013, Enova’s then-parent company, Cash America, paid a $ 5 million fine after the CFPB found Enova inflated senior borrowers and destroyed documents before inspectors visited.

Read More: US Consumer Watchdog Eyes Big Tech and Credit Competition As Recovery Unfolds – Testimony


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